Online shopping is growing in popularity by the day. Entrepreneurs and business owners are increasingly looking to e-commerce to generate a high profit, low investment venture. That’s where drop shipping comes to play. But first, what is dropshipping?
Dropshipping is a fulfillment method that offers numerous benefits and advantages. It is easy, affordable, scalable, and helps you to create a successful eCommerce store without the risk of making large investments or carrying inventory.
In simple terms, dropshipping is a practice of order fulfillment where the distributor or manufacturer ships a product to the buyer on behalf of the retailer.
The practice is attractive as it helps minimize cost and risk while offering practicality and convenience.
Here are the primary benefits of dropshipping.
- It Minimizes the Startup Risks
For starters, you don’t need to pay upfront to acquire the inventory. Therefore, if the business does not work out, the only money you lose is what you’ve paid to design your website.
Further, your business is less susceptible to loss of revenue due to changing tastes or trends. The reason, there is no such thing as excess inventory.
Even better, you can offer low niche products alongside popular best sellers.
- Low Investment
Yes, it’s possible to launch a store, sell products without having to invest in thousands of inventory in advance. That’s not the case with conventional physical stores. Here, the entrepreneur requires large amounts of money to purchase inventory even before launching a business.
For dropshipping, the entrepreneur will only buy a product when the customer has made a purchase. This means reduced risks and low start-up costs.
- Saves Your Time and Money
It’s much easier to start and run a business when you don’t have to deal with a physical storefront. For instance, you don’t need to look for, manage or even pay for a warehouse to stock your products.
Even better, you don’t have to ship or pack your orders. Further, you don’t need to maintain or monitor the stock levels, handle product returns or track inventory. Each of these will save you time and money.
When buying inventory, it is cheaper and easier to stock a small number of products in large quantities. That’s not the case with dropshipping. Here, you can stock and sell as many products as you want at no added cost. If you have the time to list them on your website, then you can sell them.
When dropshipping, the biggest chunk of risks falls on the suppliers. Yes, you’ll need to work hard to sell the orders, but if your business grows or doubles, your workload will not. Therefore, you’ll experience fewer growing pains as you scale your business.
For wholesale product buyers, convenience and efficiency in ordering, shipping, and delivering products to their customers is a primary factor when looking for businesses to partner with. That’s why it is important to take note of the above benefits of dropshipping. Offering these products to your customers will give you a competitive edge over other businesses and companies that don’t.